IGI Logo

Market Update

Nifty : 24,346.70 +12.50 (+0.05%) 

Sensex : 80,501.99 +259.75 (+0.32%)

* Equity benchmark Sensex closed above the 80,500 mark, while the Nifty ended marginally higher, fueled by optimism surrounding a potential India-US trade deal, a record-high GST collection in April, and continuous foreign fund inflows. Additionally, a strong performance in global markets contributed to the positive sentiment in Indian equities.

* However, both indices retraced from their intra-day highs due to profit booking and concerns over geopolitical tensions in a neighboring country, which dampened market sentiment. The Sensex rose by 259 points, or 0.32%, closing at 80,501, after hitting an intra-day peak of 81,177, up by 935 points or 1.12%. Meanwhile, the Nifty gained 12 points, or 0.105%, to settle at 24,346, after touching an intra-day high of 24,589.

* Nifty's Oil & Gas and IT sectors were the major gainers, while Nifty Defense, Pharma, and Metal stocks fell by up to 1% due to profit booking.

* The Nifty Oil & Gas index rose nearly 1%, benefiting from a one-month low in oil prices at $61 per barrel and strong quarterly results from oil marketing companies.

* Indian Oil saw a 4% gain, closing at 143. Globally, Asian and European markets surged between 1-2.5%, while US index futures gained 1.5% following strong quarterly results from Microsoft and reports of China considering trade talks with the US.

Technical Outlook:

* Nifty Index opened flattish and witnessed a sharp up move in the first tick towards 24600 zones but was followed by the bulls giving up strength. It fell till midday and later consolidated in the second half of the session. It formed a small bodied candle on daily and weekly frame with higher upper wick which indicates some rub off at higher levels.

* However support based buying is intact and it has been making higher highs – higher lows from the last three weeks. Now it has to hold above 24200 zones for an up move towards 24500 then 24650 zones while supports can be seen at 24200 then 24050 zones.

Derivative Outlook:

* Nifty future closed negative with marginal losses of 0.10% at 24395 levels. Positive setup seen in Adani Ports, Sona BLW Precision, IOC, Godrej Properties, Bajaj Finance, NCC, Laurus Labs, MCX, National Aluminium, L&T Finance, Persistent Systems, DLF and IDFC First Bank while weakness in Indus Towers, JSW Steel, Paytm, Federal Bank, Dmart, Torrent Power, Bajaj Auto, Eicher motors, ABFRL, Ashok Leyland and Hindustan Zinc.

* On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 24000 then 23500 strike. Call writing is seen at 24500 then 24600 strike while Put writing is seen at 24000 then 24300 strike. Option data suggests a broader trading range in between 23800 to 24800 zones while an immediate range between 24100 to 24500 levels.

Global Market Update

* European Market - European stocks gained as the prospects of trade talks between China and the US boosted investor sentiment. Shares in ING Groep NV jumped 3.8% after the banking group topped estimates and issued a fresh share buyback. .UK, Germany and France Index gain up to 1.5%.

* Asian Market - Asian stocks surged to their highest level more than five weeks in broader regional rally after China said it was mulling trade talks with the US. Japan, South Korea, Hong Kong and Taiwan Index gained between 1 to 2.5%.

* US Data - Change in Non-farm payroll and Unemployment rate.

* Commodity - Oil prices declines 1% to below $62/bbl due to rising US oil inventory and report of OPEC+ to hike oil production.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412